getpmcertified.com - Welcome to ASEAN PROJECT MANAGER'S CENTER OF EXCELLENCE

Incentive Contracting - From the Sellers and Buyers Perspective

COURSE OVERVIEW:

This 1 day (8 classroom hour) seminar is intended to introduce the key concepts and fundamentals that need to be understood in order to develop and implement incentive contracting methods within an organization by applying the principles of performance based payments. This course is designed for EITHER Owners (Buyers of goods or services) or Subcontractors/Vendors (Sellers of goods or services)

WHO SHOULD ATTEND?

Contract Managers, Procurement Managers, Legal Managers, Project Managers, Functional Managers, Sub-Contractors, Vendors or anyone involved in writing, supervising, managing or executing contracts, either from the owners or contractors perspectives.

WHAT YOU WILL ACHIEVE:

An awareness of the various types of incentive contracting methods available;
The link between scope definition, contracting types and risk sharing/management;
7 Essential Principles behind successful incentive contracting;
How to avoid/minimize claims and disputes through incentive contracting;
How to develop and support “performance based” compensation systems;
How to align subcontractor/vendor performance to strategic goals of the organization;
How to use Earned Value Management as a key element of the pay for performance concepts;
How to measure performance using 360 or Balanced Scorecard methods.

WHAT YOU WILL LEARN:

Partnering- How to use Partnering and Unit Pricing to minimize bidding costs and shorten cycle times;
Design-Build Approach- The advantages and disadvantages of the Design Build approach to minimize adversarial relationship, save time and/or money;
Pure Construction Management- The advantages and disadvantages of using pure CM approach to minimize adversarial relationship, save time and/or money;
Construction Management @Risk- The advantages and disadvantages of the CM@Risk approach to minimize adversarial relationship, save time and/or money;
Cost Plus Incentive Contracting Methods- How to structure Cost Plus Contracts to minimize costs/reduce cycle times;
Cost Plus Award Fee Methods- How to structure Cost Plus Contracts to minimize costs/reduce cycle times;
Cost Sharing/Cost Reimbursable Methods- How to structure Cost Plus Contracts to minimize costs/reduce cycle times;
Fixed Price Plus Incentive Contracting Methods- How to structure Fixed Price Contracts to minimize costs/reduce cycle times;
Shared Savings/Cost Over-run Contracts- How to create contracts which reward contractors for reducing costs/time to market;
Incentive/Disincentive Contracting-The advantages and disadvantages of using disincentive contracts alone;
Bidding using the “A + B” Method- Structuring an incentive contract when time to market is most important.
Bidding using the “Lane Rental Approach” – Learning from road construction how to structure incentive contracts to minimize disruptions to on-going operations;